India has overtaken South Korea to become Hyundai Motor Company’s second-largest market globally, behind North America, highlighting the growing importance of the Indian automobile market to the South Korean automaker. The shift follows stronger vehicle sales in India and a decline in its home market during the first half of 2026.
India Sales Surpass South Korea
Between January and June 2026, Hyundai sold nearly 306,000 passenger vehicles in India, marking a 7% year-on-year increase. In comparison, sales in South Korea fell 11% to 263,722 vehicles. North America remained Hyundai’s largest market, with sales exceeding 580,000 units during the same period.
The development marks a significant change for Hyundai, which entered India in 1996. India’s expanding passenger vehicle market and growing demand for SUVs and newer vehicle technologies are strengthening its role in the company’s global business.
Pune Plant Expansion to Boost Production
Hyundai Motor India is investing an additional ₹4,000 crore to expand its Pune manufacturing plant’s annual production capacity from 170,000 to 320,000 vehicles. Including its Chennai facilities, the expansion is expected to take Hyundai’s total annual manufacturing capacity in India to more than 1.1 million vehicles.
The Pune facility is also expected to support Hyundai’s hybrid vehicle plans and strengthen local sourcing. The company aims to increase the share of locally sourced components at the plant from 83% to 92%.
26 New Models Planned
Hyundai plans to introduce 26 models in India, including new electric and hybrid vehicles. It aims to have four electric vehicles in its portfolio by 2029 and is investing in charging infrastructure, battery-cell localisation and power electronics.
The company has also stated that sustainable powertrains will account for 50% of its portfolio by 2030. These plans are part of its broader strategy to expand manufacturing, improve localisation and respond to changing consumer demand.
India’s Growing Role in Hyundai’s Global Strategy
Hyundai Motor Group has announced plans to invest $15.5 billion in India between 2026 and 2032. The investment programme covers manufacturing expansion, research and development, supplier development and future automotive technologies.
India’s emergence as Hyundai’s second-largest market reflects its growing importance as both a sales destination and a manufacturing base. With higher production capacity, new model launches and increased investment in electric and hybrid mobility, Hyundai is positioning its Indian operations to play a larger role in its global growth plans.
